For information about any federal tax, contact:
Internal Revenue Service
Poff Federal Building
210 First St., SW
Roanoke, VA 24011
1-800-829-3676 (Tax Forms)
Federal Employer Identification Number
Employers are required to obtain a Federal Employer Identification number (EIN). To apply for the number, file Federal Form SS-4, which can be obtained from any office of the Internal Revenue Service. Sole proprietors must obtain an EIN if they pay wages to one or more employees or if they file an excise tax return.
Employee Income Taxes
Employers are required to withhold Social Security, (FICA), taxes from the wages of employees and are liable for the taxes whether or not they have been collected. Employers are required to withhold income tax. The taxes should be filed quarterly on Federal Forms #941 and deposited in any authorized bank with coupon #8109 (or electronically deposited).
Individual, Partnership, and Corporate Income Tax
Individual, partnership, and corporate income taxes must be filed with the Internal Revenue Service. IRS Publication #334 “Tax Guide for Small Businesses,” discusses the various federal tax requirements in more detail.
Federal Unemployment Tax
This federal tax, also known as FUTA, is assessed on the employer only. An annual tax return, Form #940, must be filed by January 31. Quarterly deposits can be made to any authorized bank using coupon #8109 (or electronically deposited).
Virginia Unemployment TaxVirginia, in addition to the federal government, levies a tax on employees’ wages. The tax is paid by the employer into a state fund from which unemployment benefits are paid.
Virginia Employment Commission
5060 Valley View Blvd., NW
Roanoke, VA 23220
Any employers who have three or more regular employees is required to furnish workers’ compensation insurance coverage, at no cost to the employees. The insurance may be purchased through a private insurance company or the employer can apply to be self-insured to:
Virginia Workers’ Compensation Commission
1000 DMV Dr.
Richmond, VA 23220
Retail Sales TaxFor the privilege of making retail sales in Virginia, a seller is subject to a sales tax imposed on the gross receipts form retail sales of tangible personal property. The seller collects the tax from the customer by separately stating the amount of the tax and adding it to the sales price or charge. Retail sales are defined as sales to a consumer or to any person for any purpose other than for resale. The tax rate is 5 percent (4 percent state and 1 percent local tax). Every individual, partnership, corporation, etc. engaged in business as a retail dealer in Virginia must register with the Department of Taxation to obtain a Certificate of Registration. Dealers must also collect the retail sales tax. Reports must be filed and the tax paid monthly or quarterly depending upon the volume of business.
Corporate & Employees’ Income Tax WithholdingFor further information about Virginia income taxes for partnerships or corporations and withholding taxes on employees’ income, contact the Roanoke District Office:
Virginia Department of Taxation
3610 W. Broad Street
Richmond, VA 23230